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Ashoka Buildcon Ltd.

BSE: 533271 Sector: Engineering
NSE: ASHOKA ISIN Code: INE442H01029
BSE 00:00 | 20 Apr 266.90 -6.35
(-2.32%)
OPEN

271.00

HIGH

273.95

LOW

266.05

NSE 00:00 | 20 Apr 266.90 -6.35
(-2.32%)
OPEN

272.50

HIGH

274.15

LOW

266.00

OPEN 271.00
PREVIOUS CLOSE 273.25
VOLUME 9721
52-Week high 281.20
52-Week low 171.65
P/E 23.62
Mkt Cap.(Rs cr) 4,995
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 271.00
CLOSE 273.25
VOLUME 9721
52-Week high 281.20
52-Week low 171.65
P/E 23.62
Mkt Cap.(Rs cr) 4,995
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashoka Buildcon Ltd. (ASHOKA) - Auditors Report

Company auditors report

Independent Auditor's Report to the Members of Ashoka Buildcon Limited

1. Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements ofAshokaBuildcon Limited ("the Company") which comprise the Balance Sheet as atMarch

31 2017 the Statement of Profit and Loss (including Other

Comprehensive Income) the Cash Flow Statement and

Statement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information.

2. Management's Responsibility for the Standalone Ind AS Financial Statements

2.1 The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including Other Comprehensive Income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including Indian Accounting

Standards (Ind AS) specified under section 133 of the Act read with Companies (IndianAccounting Standard) Rules 2015 as amended.

adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

3. Auditor's Responsibility

3.1 Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

3.2 We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

3.3 We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

3.4 An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

3.5 We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone Ind AS financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs(Financial position) of the Company as at 31st March 2017 its profit (Financialperformance)its cash flows and changes in equity for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act a statement on the matters specified in the paragraph 3 and 4 of the order isgiven in "Annexure

A".

(ii) As required by sub- section (3) of section 143 of the

Act we report that :

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as

by law have been kept by the Company so far as it appears from our examination of thosebooks;

(c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Change in Equity dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with Companies(Indian Accounting Standard) Rules 2015 as amended;

(e) On the basis of written representations received from the Directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 from being appointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended by the Companies (Audit and Auditors) Rules 2017 in our opinionand to the best of our information and according to the explanations given to us:

(a) The Company has disclosed the impact of pending litigations in its standalone IndAS financial statements. Refer note 47(i)(c) of standalone Ind AS financial statements.

(b) Based on the information and explanations provided to us the company has made therequired provisions towards material foreseeable losses in respect of long termcontracts. The Company did not have any derivative contracts.

(c) The company was not required to deposit or pay any dues in respect of the InvestorEducation and Protection Fund during the year.

(d) Disclosures in respect of "Bank Deposit" made by the Company as a partof Note no. 50 of its standalone Ind AS financial statements as to holding as well asdealing in Specified Bank Notes (SBNs) during the period from November 8 2016 to December30 2016 were in accordance with books of accounts maintained by the Company. Disclosuresof "Permitted Receipts & Payments" could not be verified for want ofadequate evidence necessary to support the breakup of currency notes into ‘SBN' and‘Other denomination'.

for M P Chitale & Co.

Chartered Accountants

Firm Regn No. 101851W

Sd/-

Murtuza Vajihi

Partner

ICAI M No. 112555

Place : Mumbai

Date : May 30 2017

ANNEXURE A TO THE INDEPEDENT AUDITORS' REPORT (Refer to in paragraph 5 (i) of ourreport of even date) i) a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of all fixed assets.

b) Pursuant to the company's programme of verifying fixed assets in a phased mannerover a period of 3 yearsverification of certain items of Property Plant and Equipmentwere conducted during the year. In our opinion such programme of verification isreasonable. We are informed that no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us title deeds of immovableproperties classified as fixed assets are in the name of the company. except for titledeed in case of one Building (Gross block Rs. 147.24 lakh Net block Rs. 133.26 lakh) forwhich transfer deed is yet to be executed in the name of the Company.

ii) Inventories have been physically verified by the Management at regular intervals.In our opinion the frequency of such verification is reasonable. We are informed thatdiscrepancies noticed on such verification were not material as compared to the bookrecords. The discrepancies noticed on such verification have been properly dealt with inthe books of account.

to us we are of the opinion that the terms and conditions of unsecured loans grantedto ten parties covered in the register maintained u/s 189 of the Companies Act 2013 areprima facie not prejudicial to the interest of the company.

b) In case of the above loan the schedule of principal repayment and interest payment(wherever applicable i.e. eight parties) has been stipulated. Since the principal andinterest are not due for repayment/payment we are unable to comment whether receipt ofprincipals and interest is regular.

c) Since the principal and interest are not due for repayment we are unable to commenton this clause. iv) According to the information and explanations given to us and on thebasis of representations of the management which we have relied upon the loans given bythe company are not covered by Section 185 or Section 186 of The Companies Act 2013 andhence this clause is not applicable.

v) According to the information and explanations given to us the Company has notaccepted deposits from the public in terms of provisions of sections 73 to 76 of theCompanies

Act 2013.

vi) According to the information and explanations given to us pursuant to the rulesprescribed by Central Government for the maintenance of cost records under section 148 (1)of the Companies Act 2013 we have broadly reviewed the cost records and are of theopinion that prima facie the prescribed records have been made and maintained. Howeverwe have not carried out a detailed examination of the same.

vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company has been generally regular indepositing undisputed statutory dues including investor education and protection fundprovident fund employees state insurance income tax Value Added Tax (VAT) salestaxservice tax Professional tax custom duty excise duty value added tax cess andother material statutory dues as applicable with the appropriate authorities exceptthat there have been certain delays in payments of VAT Professional tax and

Service tax in certain cases. There are no statutory dues outstanding as of March 312017 for a period of more than six months.

b) As at the year-end according to the records of the Company and information andexplanations given to us disputed statutory dues that have not been deposited on accountof appeal matters pending before the appropriate authorities are as under:-

Amount Particulars Authority
Financial Year ( Rs. in lakh)
2000-01 93.34 Customs Asst. Commissioner
of Customs Mumbai
2005-06 71.06 Service Tax Supreme court of
2006-07 India
2006-07 2252.72 Sales Tax Joint Commissioner
2009-10 (Appeal)
Maharashtra
2008-09 20.54 Sales Tax Deputy
Commissioner
Chattisgarh
2009-10 24.80 Sales Tax Add. Commissioner
(Appeals)
Chattisgarh
2008-09 1.93 Sales Tax Asst. Commissioner
Gujarat
2007-08 0.32 Sales Tax Asst. Commissioner
Rajasthan
2011-12 1.57 Sales Tax Joint Commissioner
Karnataka
2012-13 1204.12 Sales Tax Senior Joint
Commissioner West
Bengal
2013-14 308.67 Sales Tax Senior Joint
Commissioner West
Bengal
2014-15 57.40 Sales Tax Asst. Commissioner
Appeal Bihar
2013-14 108.37 Sales Tax Asst. Commissioner
Tamilnadu
2014-15 1465.84 Sales Tax Asst. Commissioner
Tamilnadu
2008-09 11.48 Income Tax ACIT CC-1 Nashik
2009-10 0.24 Income Tax ACIT CC-1 Nashik
2010-11 82.67 Income Tax ACIT CC-1 Nashik
2011-12 20.99 Income Tax ACIT CC-1 Nashik
2012-13 2914.66 Income Tax ACIT CC-1 Nashik
Total 8640.72

viii)According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto banks financial institutions and debenture holders. The Company has not borrowed anyfunds from Government.

ix) In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by term loans for the purposes forwhich they were raised. The Company has not raised any money by way of initial publicoffer/further public offer (including debt instruments) during the year. Terms andconditions of utilisation of funds raised through loan from related party have not beenmentioned in respective document hence we are unable to comment on this clause.

x) According to the information and explanations given to us and on the basis ofrepresentation of the management which we have relied upon no fraud by the Company or onthe company by its officers or employees has been noticed or reported during the year. xi)According to the information and explanations given to us managerial remuneration hasbeen paid in accordance with the provisions of section 197 read with Schedule V to theCompanies Act 2013.

xii) Since the company is not a nidhi company this clause is not applicable.xiii)According to the information and explanations given to us all transactions with therelated parties are in compliance with section 177 and 188 of Companies Act 2013 asapplicable and the details have been disclosed in the Financial Statements as required bythe applicable accounting standards.

(xiv)The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

(xv)According to the information and explanations given to us the company has notentered into any non cash transactions with directors or persons connected with him.

(xvi)The company is not required to be registered under section 45-IA of the ReserveBank of lndia Act 1934.

for M P Chitale & Co.

Chartered Accountants

Firm Regn No. 101851W

Sd/-

Murtuza Vajihi

Partner

ICAI M No. 112555

Place : Mumbai

Date : May 30 2017

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT (Refer to in paragraph 5 (ii)(f) of ourreport of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AshokaBuildcon Limited ("the Company") as of 31st March 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the

Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by ICAI and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

for M P Chitale & Co.

Chartered Accountants

Firm Regn No. 101851W

Sd/-

MurtuzaVajihi

Partner

ICAI M No. 112555

Place : Mumbai.

Date : May 30 2017